Trading Ltd Co purchases BTL using business profits as deposit

Trading Ltd Co purchases BTL using business profits as deposit

02.05.17 | Written by: Paul Martins

We were approached by two business partners looking to invest in their first buy to let property - a two-bed flat in Redhill, Surrey. The partners were looking to make the purchase through their dentistry business, using the business’s retained profits as a deposit.

Buy to let funding options for trading limited companies is limited, with many lenders only catering to SPV limited companies. Pricing for trading limited companies also tends to be higher because of the complex underwriting involved.

We took the case to Keystone Property Finance, which offers the same pricing to SPVs, trading limited companies and individuals.

We helped the client fill out the application form and put together the necessary supporting documentation which included the last two years’ business trading accounts.
The case was accepted and the following terms were offered:

Property value: £370,000

Loan amount: £270,000

LTV: 73%

Rate: 3.99% 5 Year Fixed

Term: 20 years interest only

RTI calculation: 125% @ 3.99%

Mortgage payment: £915 pcm

Lender arrangement fee: 2% added to the loan (£5,400)

Rental income: £1,300 pcm

Gross yield: 4.22% pa

SPV Ltd Co or Trading Ltd Co? Trading Ltd Company

Consultant: Paul Martins, 01732 471616

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.